The medical center, which runs a main 388-bed facility in Perth Amboy as well as the 113-bed hospital in Old Bridge, had been in discussions with Robert Wood Johnson University Hospital in New Brunswick over a possible sale of the Old Bridge division.

In a joint statement today, the medical center and the New Brunswick hospital, said they had terminated discussions.

"After careful review, both organizations have agreed that they can best ensure access to high quality services by the region’s patients and physicians by remaining independent," the statement said.

Lynette King-Davis, vice president for marketing and business development at Raritan Bay, said the medical center’s financial condition has improved and plans are being made to expand services.

"In 2009 we did better than our budget projection estimates," King-Davis said. "We are not looking for suitor," she said.

In a September 2008 newsletter to employees, the medical center announced a possible sale of the Old Bridge division.

A month later, the hospital confirmed it was in discussions with a possible buyer, later identified as Robert Wood Johnson.

Raritan Bay officials at the time said the sale was needed to prop-up the Perth Amboy center.